Major U.S. insurers gain as Treasury yields climb

Fednat Holding Co

28/06/2022 16:08

** Shares of insurers track a rise in U.S. Treasury yields
and Wall Street's main indexes  US/   .N 
    ** S&P 500 Insurance Index  .SPXIN  adds ~1.1% 
    ** Travelers Companies Inc  TRV.N , MetLife Inc  MET.N ,
American International Group Inc  AIG.N  and Prudential
Financial Inc  PRU.N  up between ~1.7% and ~2.6% in morning
trading
    ** Smaller insurance firms Brighthouse Financial  BHF.O  and
FedNat Holding Company  FNHC.O  advance ~3.4% and ~8.3%
respectively
    ** U.S. Treasury yields rose on Tue, with short end of curve
rising above the long end, in anticipation of Fed's plans to
aggressively raise interest rates to stamp out inflation
 urn:newsml:reuters.com:*:nL1N2YF1CR
    ** Insurers benefit from rising yields as higher interest
rates typically boosts their profitability
    ** Two-year  US2YT=RR  Treasury yield, which typically moves
in step with interest rate expectations, was up 2.1 basis points
at 3.132%
    ** Yield on benchmark 10-year Treasury notes  US10YT=RR 
rose 3.2 basis points to 3.226%
    ** Meanwhile, bank shares boosted Dow Jones and S&P 500
indexes on Tue as the big four lenders raised dividends
following a stress test

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com;))